France is negotiating large defense contracts with the oil-rich kingdom.

Le Drian said the Saudi side confirmed to him that a €1.1 billion (US $1.49 billion) contract to overhaul four frigates and two refueling ships, in service since the 1980s, had “entered into effect on Oct. 7.”

The work would involve French weapons and systems makers, DCNS, Thales and MBDA, he said in a statement.

Discussions are meanwhile ongoing regarding another contract that could amount to €2 billion euros (US $2.72 billion) for modernizing Saudi air defenses.

It would involve supplying Saudi Arabia with new generation Crotale surface-to-air rockets, produced by Thales.